Cabinet selects projects for Public Private Participation

नई दिल्ली New Delhi: Government has selected about 20 railway projects worth Rs.900 bn ($US 14.5bn) for domestic or foreign direct private investment, allowing Indian Railways to float global bids shortly.

This follows the government’s announcement earlier this year that it will open up India’s rail sector by relaxing the Foreign Direct Investment (FDI) rules to permit 100% investment in rail projects including suburban schemes, high-speed projects, dedicated freight lines, rolling stock, electrification, signalling, freight terminals and logistics parks, and passenger stations.

Two high-speed projects have been identified for public-private partnership (PPP) and foreign investment. The Rs 631bn 534km Mumbai – Ahmedabad high-speed will be executed as either a design, build, finance, operate and transfer (DBFOT) scheme or through government-to-government cooperation. As with the other identified projects, the Mumbai – Ahmedabad corridor will be eligible for a Viability Gap Funding (VGF) amounting to 20% of the total cost. The other high-speed rail project identified is the Chennai – Bangalore – Mysore line.

Suburban projects include the 49km Mumbai Chhatrapati Shivaji Terminal (CST) – Panvel line costing Rs 140bn which will be executed as a DBFOT scheme.

New freight lines identified comprise the 282km Dankuni – Gomoh line costing Rs 45bn and a 53km line from Whitefield to Kolar costing Rs 3.5bn.

Rolling stock projects on the list include a Rs 12bn scheme to manufacture 500 multiple-unit cars a year at Kachrapara in West Bengal and a Rs 5.5bn project for the annual production of 400 aluminium coaches at a new factory at Palkkad in Kerala.